Question 10

QUESTION 10 Zimbi, Indaba and Madoda were in partnership sharing profits or losses in the ratio of 5:3:2 The following information is extracted from the statement of financial position of the partnership as at 30 November 2019, the end of the financial year. Capital: Zimbi...... Capital: Indaba .......... ....... Capital: Madoda...................... Furniture at carrying amount Equipment at carrying amount Loan from Zimbi... Trade payables control.. 12 000 10 000 7 000 29 000 22 000 13 000 12 000 ASSIGNMENT 01 - FIRST SEMESTER - QUESTION 10 (continued) Bank and cash....... 3 000 The partners decided to dissolve the partnership on 1 December 2019 and to realise the assets at the best prices over a period of three months. Zimbi agreed that his loan would only need to be repaid at the end of the third month together with interest at the rate of 12% per annum provided that distributions were to be made monthly if possible but in such a way as to ensure that no partner would be called upon to make a refund. Assets sold and expenses incurred were as follows: Carrying amount Proceeds Realisation expenses incurred At 31 December 2019 At 31 January 2020 At 28 February 2020 24 000 17 000 10 000 18 000 23 000 9 000 1 100 1 000 Which one of the following alternatives represents the correct amount that must be paid to Indaba as cash distribution on 31 January 2020? 1. R5 950 2. R4 580 3. R9 370 4. R6 370